ReNew Power Ventures gets Rs 2,250 crore from Stake Sale

The Canadian pension fund manager,  CPP Investment Board (CPPIB) becomes the third largest stakeholder in ReNew Power where Goldman Sachs holds the majority share. It is acquiring a 14-15% stake for $350 million (Rs 2,250 crore).

CPPIB is acquiring the stake in two transactions. It has made a primary investment of about $200 million through compulsorily convertible preference shares.

These will be converted into equity whenever ReNew goes for an initial public offering. In addition, it will buy 6.33% of ReNew’s shares from Asian Development Bank for about $150 million. This transaction, which values the company at $2.37 billion, will give ADB a handsome return for its investment of $50 million made three years ago.

CPPIB’s deal is the biggest investment in a renewable energy company in India this year. This surpasses a $200 million investment, again in ReNew, by Japan’s largest utility JERA Co in February for a 10% stake. The JERA investment had valued ReNew at $2 billion.

CPPIB invests the excess funds of the Canada Pension Plan Board. It has been investing in India since 2010, in sectors such as infrastructure, real estate and financial services.